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Court Ruling Lays Rocky Road For Redevelopment

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By CAROL WESTMORELAND

Published: October 9, 2007

Across the state, redevelopment efforts could face a rough road ahead following the recent Florida Supreme Court decision in Strand vs. Escambia County. Until now, redevelopment leaders - fostered by Florida's more than 180 community redevelopment agencies (CRAs) - have been building better communities through the use of increment revenue financing (IRF).

The goal of IRF, which is generated by a percentage of the property tax revenues of community redevelopment areas, is not only to provide funds for redevelopment, but to sustain the quality of life in local communities.

Through the issuance of bonds and obtaining lines of credit secured by increment revenues, CRAs work to improve underserved communities. Redevelopment enables these communities to experience increased commerce and investments, affordable housing and reduced crime.

The court revised its ruling on Sept, 28, to clarify that school board certificates of participation (COPs), state bonds and some of the debt held currently by community redevelopment agencies are exempt from the ruling. However, it left other types of debt issued by CRAs up to interpretation. CRAs may now be unable to routinely borrow for necessary capital projects in redevelopment areas, including sidewalks, lighting, water and sewer upgrades, parks and other critical infrastructure improvement programs.

The Strand case did not originally apply to a project in a community redevelopment area; unfortunately, however, this decision has been interpreted to negatively impact CRAs. Contrary to the issues in this case, projects undertaken by a CRA are well-planned years in advance through public input, meetings and a redevelopment plan.

Since the Community Redevelopment Act was adopted in 1969, many cities that were once blighted have grown into vibrant, more productive communities, attracting new residents, businesses and job opportunities.

If the court does not overturn its ruling requiring a referendum vote for future bonds, the cost of redevelopment projects may increase dramatically. Requiring a referendum for each project in a CRA will cost more time and money and will effectively kill any such effort. And, who will vote? If the referendum requires a countywide vote, it could present delays and barriers for securing funding for redevelopment projects statewide.

Take a look around your community and imagine what it would look like today without progressive redevelopment efforts.

The Supreme Court's justices should carefully consider the future impacts of the Strand opinion and recognize the many contributions CRAs are bringing to their communities and how the court's decision has the potential to thwart redevelopment efforts in Florida.

Florida is a diverse and densely populated state, and we must continually redevelop our urban areas or blight will take a foothold.

Carol Westmoreland is the executive director of the Florida Redevelopment Association, which has contested the court's ruling.

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